The government has so far raised about Rs 5,093.87 crore through stake sales in PSUs. As per the revised estimates in the Interim Budget, the disinvestment target was lowered to Rs 16,027 crore in this financial year from Rs 40,000 crore.

"The proposed CPSE ETF will serve as an additional mechanism for the government to monetise its shareholdings in those CPSEs that eventually form part of the ETF basket," the government had said.

Goldman Sachs is acting as the asset management company for the ETF.

ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange.

ETFs were introduced in India in 2001. Currently, there are about 33 ETFs with assets under management of close to Rs 11,500 crore held by 6.2 lakh investors. Gold ETFs dominate the market in India.